MR.  NILES,  OF  CONNECTICUT, 


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RESOLUTION  OF  M  R.  E  W  I  N  G 

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RESCINDING  THE  TREASURY  ORDER. 

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Delivered  in  the  Senate,  December,  ^835. 


WASHINGTON: 

DLAITl  AND  RIVES,  PRINTERS. 

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SPEECH. 


In  betiate,  December  22,  1836 — On  the  resolution 
of  Mr.  Ewing  of  Ohio,  for  rescinding1  the  Trea¬ 
sury  order  of  the  11th  July,  1836 
Mr.  President:  1  had  intended  to  submit  some 
remarks  on  the  resolution  before  the  Sena'e,  and 
may  as  well  do  it  at  this  time  as  any  other.  In  the 
course  of  the  debate,  there  has  been  several  topics 
drawn  into  consideration,  not  necessarily  embraced 
in  the  question  to  be  decided,  yet  somewhat  con- 
nected  with  tne  general  subject.  Some  of  these  I 
shall  have  occasion  to  allude  to  as  !  proceed;  but 
wi.l  here  notice  one  preliminary  observation  of  the 
Senator  from  Massachusetts,  (Mr.  Webster.,)  That 

S  T  °k  °.Cfa?on  to  say  that  the  vote  on  this 

resolution  would  form  a  test  question;  that  those 

who  vote  against  the  resolution  will  be  under 
s iooc,  as  being  favorably  to  the  ultra,  and  as  he  re 
garded  them.’  extreme  opinions  of  the  Senator 

cy  TndThern,(M- 

™  \  Pr  b  ,C  revenue»  and  observed  that 
it  might  be  fortunate  the  public  is,  to  be  thus 
early  apprized  of  what  is  to  be  the  policy  of  t  he 

imnortyVandK-f  thC  Comin& administration, on  tho*e 
important  subjects.  He  had  heard  the  remark 

"0t  thinkinK  k  «"«>  «*■  or 
justified  by  the  occasion.  Without  stonnin^  to 

.nqu.re  what  are  the  opinions  of, he  Sena tor  frrm 

Missouri,  or  what  they  at  e  considered  to  be  bv  t^ 

W ’  o™ynt hatni0MrSKChuSe1',Sl  he  muslbe 

-rLa„  ‘■ne  que.ition  before  the  Senate 

which  would  7,r,T’  ce  ,,,0"Kh‘  wc*h*y  feasons 
wmcti  would  justify  Senators  in  voting  atrainst 

any  sense' or^'n  "  “"V"1 

queslions’of  currency0 S’  'egi,rd  <0,b"  creat 

Senator  h  ,d  referred  $ 1  T'V  to  which  th< 

p;,b,ic  ~:uhee 

rr  V/ £  ter  ?  be;n?  "»"*• 
iVhr^brn'iSrt^JsS“n^ 

-east, re  ^  felt 

TltnceT'cn  ex,raor‘,in»rv  circum- 

tTs  LS  h  w,,h  tl,r  s>'«  "f  the  public 

and  he  was  not  sure  that  this  was  not  the 


true  light  in  which  it  ought  to  be  consider* 
ed.  It  was  the  duty  of  the  Executive  to 
watch  over  the  public  revenue,  and  see  that 
it  was  secure.  Was  there  no  hazard  from 
the  extrns:ve  and  gambling  speculations  in  ths 
public  lands  paid  for  only  in  bank  bills,  which 
were  handed  over  by  the  Receivers  to  the 
depo  ite  banks,  and  placed  to  the  credit  of  the 
United  States’  A  larg-  portion  of  the  purchases, 
were  paid  for  in  bids  of  the  dbposite  banks,  which* 
afier  going  into  the  hands  of  the  R<  ceivers,  were 
returned  and  loaned  out  again,  to  go  through  the 
same  operation.  This  was  virtually  reviving  the 
old  credit  system,  as  the  United  States  received 
nothing  but  credit  for  the  lands.  If  there  was  no 
hazard  to  the  revenue  from  these  practices,  and 
from  the  magnitude  and  extent  of  the  sales,  made 
upon  this  kind  of  credit,  then  gentlemen  over  the 
way  had  altered  their  opinions  very  much  within 
the  last  six  months.  During  the  1  .st  session  of  Con- 
g-es*,  we  were  repeatedly,  and  almost  daily 
told  by  those  who  now  oppose  the  Treasury  order, 
that  the  funds  of  the  Government  m  the  western 
deposits  banks  were  insecure,  and  that  nothing 
but  credit  was  received  for  the  public  lands  Can 
gentlemen  have  forgo  ten  their  often-repeated  de¬ 
clarations  on  this  subject?  If  so,  they  must  be 
blessed  with  short  memories.  Again  and  again 
did  Senators  refer  to  the  small  amount  of  specie 
in  those  banks,  and  an  impress  on  was  attempted 
to  be  made,  that  their  specie  funds  were  the  only 
solid  security  for  the  large  sums  due  the  United 
States. 

The  order  was  calculated,  and,  »o  a  considera- 
j  ble  extent,  no  doubt,  has  corrected  d  is  evi]  jr 
insured  something  valuable  for  the  lands,  ani  that 
something  valuable  was  transferred  to  the  depo- 
site  banks,  and  formed  a  more  solid  basis  for  the 
Government  credits. 

The  order  was  also  calculated  to  check  sanita¬ 
tion  in  the  public  lands,  which,  in  itself,  Va-  an 
evil  of  no  small  magnitude,  transferring  the  best 
part  of  the  national  domain  into  the  hands  of 
heartless  specula‘ors,  to  the  great  injury  of  actual 
settlers,  and  the  detriment  of  the  whole  country. 
Public  opinion  was  risirg  up  against  h,  an  l  re¬ 
quired  that  something  should  be  done  to  arrest  an 
evil  of  so  extensive  and  serious  a  nature.  VVhnt 
other  or  better  measure  could  have  been  adrp*cd, 
until  Congress  should  convene,  which  might 
adopt  such  further  legislation  in  regard  to  the 
.  <*ab-s  of  the  lands,  as  the  public  interests  m  .v  re- 
i  quire  > 

i  Sir,  (said  Mr.  N.)  there  is  another  re.  aon  wh,'  l 


4 


taivnot  vote  for  the  resolution  before  the  Senate. 
1  ««»•  rule  has  been  adopted  in  regard  to  the 
tale  of  die  public  land*,  that  has  been  in  operation 
«w  a  time,  and  which  has  a  tendency  t@  check 
speculation.  1  w  ni  l  r  o’  repeal  that  mle,  and  open 
Sgain  tt  e  floi  dgates  of  speculation — certainly  not 
until  l  know  whether  Congress  wilt  pass  any  act 
regulating  the  sale  <  f  the  public  lands.  It  is,  1 
think,  the  duty  of  Congress  to  do  this;  the  interest 
of  the  country  requires  it;  public  sentiment  de¬ 
mands  it;  and  it  '8  strongly  recommended  by  the 
3*resident.  If  Congress  suffer  the  session  to  pass 
off,  without  att<  mpting  to  regulate  the  sale  of  the 
public  land?,  so  as  to  check  speculation,  they  will 
neglect  their  duty  to  the  country.'  Believing  that 
there  will  be  additional  legislation  on  the  subject, 
which  may  supersede  the  Treasury  order,  he  was 
not,  at  this  tin  e,  prepared  to  disturb  it.  Changes 
in  any  extensive  business  arc  always  attended  with 
swre  incor vc  nience.  and  should  be  avoided  as 
much  as  possible.  When  it  shall  be  settled  that 
Congress  will  not  alter  the  system,  it  may  be¬ 
come  necessa’ y  to  decide  whether  the  rule  pre¬ 
scribed  in  the  order  shall  be  maintained,  or  the 
old  prach.ee  restored;  and  if  we  do  any  thing  on 
this  subject,  our  action  should  be  more  compre 
hens; re;  it  should  embrace  the  whole  subject,  and 
be  settled  by  law,  what  currency  shall  be  received 
for  the  payment  of  the  revenues;  not  rr.lv  from  the 
lands,  but  from  customs  and  all  other  dues.  The 
•ioubt  and  uncertainty  which  hangs  over  this  sub¬ 
ject  ought  t  bo  removed. 

g*For  th  ese  reasons,  therefore,  ho  should  vote 
against  reri.ulipg  ?ho  Treasury  order,  ev  n  if  he 
was  satisfied  that  the  rule  it  prescribes  was  not 
on.:*  which  it  would  be  expedient  and  just  to  t  s- 
Jtfcbl»sh  as  a  settled  policy. 

In  this  ■»  iew  of  the  suhiect,  he  had  thrown  out 
of  the  case  the  taral  objection  which  has  been 
rar-ed  arreinst  the  Treasury  order. 

Mr.  President,  there  are  two  general  ground^ 
of  objection  that  have  b  ’en  urged  against  the 
order,  which  the  resolution  on  vour  table  pro- 
fxwen  to  rr  scinri,  which  1  w  ill  proceed  to  con- 
aider.  The  first  objection  is,  that  it  is  illegal;  the 
second,  that  its  operation  is  partial,  unjurf,  and 
injurious  to  the  country,  and  h  *s  been  the  princi¬ 
pal  cause*  of  the  embarrassments  and  pressure 
rt**  money,  which  have  been  so  extensively  ex¬ 
perienced  . 

It  h?ts  also  been  claimed  by  the  Senator  from 
Ohio,  (Mr.  Ewing, )  that  the  order  is  unconstitu¬ 
tional,  ’hat  if  conflicts  with  that  provision  of  the 
encatitut ion,  which  declares  that  **  the  citizens  of 
each  Sla’e  shill  he  entiled  to  all  the  rights  and 
Immunities  of  the  citizens  of  the  several  States.” 
This,  however,  is  a  very  small  point,  so  small  that 
foe  Senator  seemed  to  find  it  difficult  to  stand 
upon  it;  it  wan  quite  too  small  for  him  to  vraite 
the  time  of  the  Senate  about,  and  he  should  there¬ 
fore  pass  it  over- 

3  s  the  Treasury  order  contrary  to  law?  If  it  is,  it 
c«ght  to  be  rescinded  without  regard  to  other 
considerations  ? 

Congress  is  empowered  to  lay  taxes,  and  to  «u- 
th(  rize  and  regulate  the  sale  of  the  public  lands; 
and  in  doing  this,  it  can  no  doubt  direct  the  kind 
of  money  or  currency  which  shall  be  received  in 


|  payment.  But  if  it  neglect  do  this,  it  becomes 
i  the  duty  of  the  Executive,  who  is  charged  with 
I  executing  •  Iv*  taw,  to  receive  payment  fi<r  taxes 
and  lands  in  the  lugal  currency  of  the  Unit' d 
States.  What  that  legal  currency  is,  there  cun  be 
no  dispute,  so  th.it  the  only  question  which  can 
arise,  is,  wither  there  is  any  law  which  autho¬ 
rizes  ’.he  payment  of  the  revenue  and  debts  due 
tire  United  States,  in  raiy  othi.r  currency,  or  in  any 
other  way?  [t  is  claimed  that  the  joint  resolution 
of  1816,  requires  the  Secretary  of  the  Treasury  1 
}  to  collect  the  taxes  and  debts  due  the  United 
|  States,  in  a  currem  y  different  from  the  legd  cur- 
i  rency  of  the  country.  That  resolution  provides, 
j“t.hat  the  Secretary  of  the  Treasury  be  required 
J  and  directed  to  adopt  ouch  measures  as  he 
i  may  deem  m  cessary,  to  cause,  as  soon  as  may 
j  be,  a'l  duties,  taxes,  debts,  or  sums  of  money 
accruing  or  becoming  payable  to  th.-;  United 
States,  to  bs  collected  and  paid  in  the  legal 
currency  of  the  United  Stabs,  or  T  reasury  notes, 
or  notes  of  the  Bank  of  the  United  States,  as  by 
law  provided  and  declared,  or  in  notes  of  banks 
which  are  payrb’e  and  paid  on  demand  in  the  said 
j  legal  currency  of  the  United  Stab?;  and  that  from 
j  and  after  the  twentieth  day  of  February  next,  no 
such  duties,  taxes,  debt0,  or  sums  of  money  ac¬ 
cruing  or  becoming  payable  to  the  United  States  ^ 
as  aforesaid,  ought  to  be  collected  or  received 
otherwise  than  in  the  legal  currency  of  the  Uni¬ 
ted  States,  or  Treasury'  notes,  or  notes  of  the 
Bank  of  the  United  States,  or  in  notes  of  banks 
,  which  are  payable  and  paid,  on  demand,  in  the 
said  legal  currency’  of  the  United  Stales/’ 

The  Senator  from  Massachusetts,  in  a  labored 
I  legd  argument,  has  attempted  to  prove  that  this 
j  resolution  creates  a  peculiar  currency,  in  regard 
j  to  all  branches  of  tho  public  revenue,  and  all 
'debts  due  the  United  States.  He  not  only  main¬ 
tains  that  the  resolution  imposes  an  obligation  on 
The  Secretary  to  r  ceive  the  notes  of  all  banks 
that  redeem  ?h*rir  bills  in  specie  at  their  counters, 

!  but  also  that  it  enlarges  the  rights  of  pay  or:*;, 

;  that  it  confers  on  the  debtors  of  the  United  States 
;  ’.be  legal  right  to  pay  their  debts  in  paper  curren¬ 
cy;  that  is,  in  the  notes  of  specie-pay  iug  banks. 

He  went  so  far  as  to  asssrb  and  stake  hi*  reputa¬ 
tion  as  a  lawyer  on  the  que*  ion,  that  a  Keceivejv 
v. ho  shouhl  refuse  to  receive  the  note*  of  spe¬ 
cie-paying  banks,  and  which  vvere  known  to  him 
■to  be  such,  would  render  himself  hade  to  sn  ac¬ 
tion  by  the  party  i  jured.  He  admits  that  the 
!  fact  that  the  notes  are  issued  by  banks  which  pay 
:  their  bills  in  specie,  must  be  made  known  to  the 
i  H.  ceiver;  so  that  upon  this  construction  of  the  re- 
j  solution,  the  receivability  of  paper  is  to  depend 
jon  a  fact,  and  ’hat  fact  it  to  he  decided  by  u  sub¬ 
ordinate  officer  of;  he  Government.  The  argument 
of  the  genii  man,  however  able,  was  too  el  .borate 
too  refined,  to  receive  his  assent.  He  trail  ne¬ 
ver  believed  that  profound  legal  science  was  very 
necessar  y  in  construing  a  pi  in  statute  law;  nor 
did  he  consider  that  men  of  eminent  profes- ional 
skill  were  always  the  safest  expounders  of  written 
laws,  whether  statutes  or  constitutional  provisions. 
Cicero  said,  in  his  da}’,  that  the  lawyers  h.d spoil¬ 
ed  many  excellent  institutions  by  their  refinements-; 
and  we  all  know,  that  in  our  own  times,  by  their 


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forced  and  strained  condrHchions,  they  h  ive  mys¬ 
tified  and  perverted  many  plain  and  pood  ia  va, 
and  bewildered  the  clearest  m'nds.  Win  ther  ve 
look  to  th**  language  or  the  manifest  object  ami 
purpose  of  the  resolution  of  1 81(1,  he  thought 
there  could  be  no  difficulty  in  understanding  it. 
We  are  told  by  legal  writers,  that  in  giving  a 
construction  to  statues,  it  is  nece  '.ary  to  ascer¬ 
tain  the  general  object  of  the  law,  the  evils  and  j 
mischiefs  that  existed,  and  which  the  act  was  de¬ 
signed  to  remove;  and  more  especially  is  l!r«  s.i-.l 
to  be  n  cessary,  when  the  language  of  an  act  is 
doubtful  or  ambiguous. 

What  w  as  the  object  of  the  resolution  oTlSl  6, 
and  what  were  the  evils  id  was  intruded  tc  reme¬ 
dy?  It  is  said  t’na*  its  object  was  to  enlarge  the 
ri  ;h!s  of  the  debtors  of  the  United  Stat  s,-nnd  i  > 
enable  them  to  pay  their  debt:  in  a  m  re  conve¬ 
nient  and  easy  manner.  But ’does  this  appear  on 
the  face  of  the  resolution?  is  it  inferable  fori 
its  till  ?  And  if  we  look  to  the  stnte^oi"  the 
Treasury,  and  the  condition  of  :he  rev  nue  at  the 


ways  specified?  On  a  suit  by  tlie  cred  tor,  could 
lie  avail  himself  of  such  instructions  t-»  vary  the 
nature  of  his  liability  ? 

'I'he  construction  .here  contended  for,  bad  al¬ 
ways  ecu  .g.vt  u  to  d-e  resold ’ion  of  1316;  and 
the  Senator  ! r  im  Massachusetts  hud,  on  former 
occasions,  regarded  it  m  the  same  light,  had 
been  show  u  by  the  extracts  read  from  his  speech  and 
report  by  the  Senator  from  Missouri,  ( Y  ‘r.  Be.iton. ) 
It  was  a  very  extraordinary  position  attempted  tr* 
lie  mnintai.red,  that  for  twenty  y*"  rs  there  bad  b/en 
a  public  law  in  force  in  1 1  United  States,  confer¬ 
ring  on  paper  money,  y  bank  bjlls,  the  leg*!  cha¬ 
racter  or  gold  and  silver,  so  far  as  regards  the 
payment  of  the  r*.  venue  rid  all  do  s  d  ie  the 
Unibed  States;  and  tliat  the  cour.irv  bias  been 
in  apprized  ofih  existence  of  such  law.  Air  act 
to  legalize  p  iper  mom  y,  and  nr  ke  it  a  lawful 
tender  for  all  debts  to  the'  United  S’atcs,  is 
one  of  great  importance,  and  w:  itU  have  been 
likely  to  have  excited  general  interest  a  id  att.n- 
lion. 


time  the  resolution  was  adopted,  we  cannot  fail  to 
discover  the  evils  which  this  resolution  was  intend¬ 
ed  to  lernedy.  Instead  of  its  object  being  to  en¬ 
large  the  rights  of  the  debtors  of  the  Govern¬ 
ment,  it  w :  s  designed  to1’ restrict  them,  .and  did 
restrict  them.  YV1  at  was  the  condition  <  f  your 
Treasury  at  that  pt.rio  ,  and  how  wjus  the  reve¬ 
nue  collected ?  There  was  then  in  the  Treasury 
more  than  one  million  of  dollars  in  the  bills  o'' 
broken  banks;  and  the  public  revenue  bad  been 
collected  in  the  notes*  of  banks  which  did  not  re¬ 
deem  tb  m  in  >pe  i‘  ;  a  large  pot  t  on  of  the  banks 
in  the  Union,  which  had  suspended  specie  pay¬ 
ments  during  the  war,  had  not  resumed  them. 
This  resolution  expressly  limited  the  Secretary  so 
far  as  not  to  permit  him  to  receive,  any  bills  of 
banks  which  did  not  redeem  them  with  specie. 
He  is  expressly  prohibited  from  receiving  the 
notes  of  non-specie  paying  bfcnks;  and  il  was  left 
optio  a!  with  him  to  collect  the  public  revenue, 
either  in  t-  e  lawful  currency  of  the  United  State*, 
or  in  Treasury  notes,  or  in  the  notes  of  sp  cie- 
paying  banks.  So  far,  a  discr  ti  >n  w-.ts  still  left 
with  the:  Secretary;  but  die  discretion  liehalex- 
ercis  u  of  taking  ini  ?.  of  banks  winch  did  not  p  .v 
their  n  tos  in  specie,  was  taken  from  him.  These 
bids  were  ttceivod  by  th  bank  of  the  United 
Spates  on'; ,  as  speci  1  d>  posit,  s,  and  the  loss  w  s 
thrown  i  pon  the  Treasury. 

Th:*  resolution  was  only  an  instruction  to  the 
Secret:,  y  of  the  Treasury;  it  bus  neither  the.  f  rm 
nor  the  language  of  a  public  i'Ct  '1  he  title  f  h  '.vs 
clc.M-ly  that  the  object  rf  Congress  was  soiciv  to 
secure  the  Treasury,  and  gu-ml  it  against  a  loss 
from  bad  money.  It.  is  entitled,  “  A  resolution 
re'ative  to  the  more  ejj'tctual  collection  ol  toe  pub¬ 
lic  icvenuc”  Cana  mere  i ; -.struct  ion  to  the  Se¬ 
cretary  of  (lie  Treasury,  as  the  fiscal  agtnt  of  they 
Government,  change  the  r  gh's  or  obligations  of 
the  debtors  of  the  United  States?  Suppose  a  cr:  - , 
diver  shouhl  instruct  bis  agent  to  receive  payment 
for  a  debt  in  some  other  than  the  Irgil  currency, 
or  to  take  less  than  the  sum  due,  or  to  receive! 
payment  in  some  kind  ol  property — would  this 
confer  on  the  debtor  the-  bgul  right  to  pi»v  Ids 
debt,  and  di '.charge  Ids  liability  in  either  of  the 


T  he  sixteenth  section  of  the  act.  chart crirg  the 
I  Bank  of  the  United  S  ate*,  provides  that  the  d<- 
j  posit cs  of  the  money's  of  the  Ui.i'ed  Sta’e*  shall 
fce  him  he  in  that  bank  and  its  branches.  I5.it  the 
bank  had  refused  to  rcceieve  the  bills  of  certain 
banks,  notwithstanding  they  were  rede  med  in 
speed  •,  and  had  been  justified  by  Congress  ih  so 
doing,  in  a  report  to  that  elite1,  urawn  up  by 
the  Senator  himself  But  if  the  reslTion  of 
I  1316  gave  to  the  bills  of  State  banks  ah  the  clv»- 
|  racter  of  gold  and  silver,  so  far  as  r  -gir  s  dues  te 
the  Government,  then  such  bills  wer  j  the  “money 
of  the  United  States,”  and  the  b  nk  was  bound 
by  its  charter  to  receive  them  on.deposite. 

Tlie  Senator  from  MassacluivUs  referred  to 
the  fact,  that  the  Pres  dent  l  ist  ses-ion  s  u.t  «  mes¬ 
sage  to  Congress,  recommending  th*'  repeal  of  the 
fuurtcf  ntV,  section  of  the  charter  of  the  li  nk  of 
the  United  Stales,  which  required  that  the  iu*e» 
of  that  bank  should  be  received  in  all  payments'® 
the  United  States.  He  could  not.  perce  ve  what 
h.f  r  nee  could  b  •  drawn  from  t  is  f  c*,  tr-tv;  r  bl* 
to  t:  e  gentleman’s  purpose;  but  it  appeared  to 
liira  that  the  necessa  y  inference  was  dirtctly  tlie 
contrary.  The  bil’s  of  the  Bank  ol  t:.c  United 
States  were  made  receivable  In  the  Gorerwn  tit, 
by  a  dutwict  provision  in  its  charter;  and  ihe 
President  vci-hed  tint  section  repealed,  which, 
would  pbee  them  on  the  same  footing  -■«  other 
bank  b  Is.  I’u<  if  the  Senator  is  c  rrect  in  bin 
argument,  it  would  have  heeo  of  no  u  e  t<>  repe.il 
the  fourteenth  section  of  the  ank  charter,  as  the 
United  .Vates  w>.uld  sti‘1  have  been  >  bi  g-d  io  re¬ 
ceive  the  bi  s  of  that  b:  nk,  under  the  r*  solution, 
j  of  1816.  Moreover,  the  fourteenth  sec’ion  wan 
never  of  an/ importance  to  the  B  i  k  of  the  Uni¬ 
ted  States,  if.  as  is  contended,  the  r: solution  of 
1^15  gave  to  the  bills  of  fill  specie  payi:  g  banks 
tile  ch  iracJer  cf  receivabilitv  for  deb  s  p  ,y  a'>!e  to 
the  United  States.  The  bills  of  th  Stat«  b.tnkK 
so  far  as  regarded  the  G overnmen*,  stoo.t  on  the 
same  footing  as  tboseof  the  n.mk  of  th.e  Un  t^A 
States;  a’though  it  has  always  been  claimed  that 
the  privilege  conferred  by  ihe  fourteenth  section* 
formed  a  part  of  the  consideration,  for  which  Ibo 


/ 


6 


corporation  had  paid  a  bonus  of  a  million  and  a 
half  of  dollars. 

Mr.  P’esident:  if  there  is  any  doubt  in  regard 
to  t?.e  legal  import  and  e  (Feet  of  the  resolution  of 
1816,  stiU  there  can  be  no  question  as  to  the  kind 
o.  currency  which  is  receivable  for  the  sales  of  the 
public  lands.  The  fourth  section  of  the  act  of 
18c0,  which  superseded  the  cred't  system,  and 
required  that  sales  sbo.  Id  be  made  for  ca<b  pay¬ 
ments,  settles  that  question.  Tlie  proviso  to  tho 
fourth  se<  don  iq  “that  no  such  lands  shall  be  fold 
at  any  pub!  c  sale  lu  eby  anthoriz  d,  for  a  le*s 
■price  than  c  ue  do darand  twenty-five  c  ents,  vor  on 
any  other  Urm 9  than  cash  prfynunfs.”  This  section 
it  is  true,  is  confined  to*  lands  forreited  to  the, 
Urrled  States;,  but  its  spirit  and  language  are  ini 
pere-.t  accordance  with  the  other  sections  of  the  | 
act.  The  clause  “cash  payments,”  mpst  be  under- ! 
storgl  in  us  ordinary  acc*  piation,  in  wb  ch  sense  it ! 
does  not  mean  Treasury  notes,  n«r  the  notes  of1 
ranks,  but  money- which  is  a  legal  tender  by  th~ 
laws  of  the  United  States.  Tn  the  ordinary  accep- 
ta  mn,  ‘cash’  s-gn-fies  money,  or  that  currency 
wlrcli  is  a  lav  fid  tender  for.  debts.  Anv  other 
construction  would  be  to  trifle  with  language  and 
an  uTsnlt  to  common  sense.  '  ° 

M~.  N.  said,  that  without  consuming  more  time 
on  that  point,  he  was  satisfied  that  the  objec- 
tion  to  the  Treasury  order  on  the  ground  or  its 
illegality,  was  entirely  unfounded. 

Mr.  N.  ?ad  he  would  p.ow  proceed  to  submit  a 
few  remarks  on  the  othgr  division  of  the  subject.  ' 
Has  the  Treasury  order  operated  unjustly  and  in 
jurtously  to  the  interests  of  the  country?  Has  it 
caused  the  embarrassments  and  pressure  for  money 
which  have  prevailed  so  extensively  and  disastrous¬ 
ly  throughout  the  country,  and  particulars  in  the 
large  commercial  cities?  All  these  evils  have  been 
chaiged  upon  it,  as  the  results  of  the  derangement 
it  has  occasioned  in  the  business  and  monetary  con¬ 
cerns  of  th  country.  In  regard  to  the  discrimi¬ 
nation  or  exception  from  ids  operation  in  behalf  of 
actual  settlers,  and  the  citizens  of  the  States  in 
which  lards  were  sold,  as  that  exception  had  now 
<eeaced,  Ke'wouhl  not. spend  any  time  upon  it- 

The  Son  tor  from  Kentucky  (Mr.  Crittenden) 
•asked,  with  an  air  of  triumph,  what  had  Seen  the 
good  effects  of  the  order?  Whilst  its  evil?,  have 
been  co  manifest,  und  of  such  great  mago'iude,  we 
have  a  rich*,  said  he,  to  ca'l  on  i’s  advocates  to 
point  out  its  benefits.  Mr.  N.  said  that  in  his  pre¬ 
liminary  remarks,  he  referred  to  what  appeared  to 
liave  been  re  me  of  the  beneficial  effects  of  the  or¬ 
der,  and  he  would  not  repeat  them  They  were 
-  such  too,  iie  believed,  as  were  contemplated  by 
the  Executive  at  the  time  the  order  was  adbpt- 
cd.  But  as  those  who  supported  the  resolution 
before  the  Senate  to,>k  the  affirmative  of  the 
isme,  lie  miglr,  perhaps,  with  more  propriety, 
cab  on  tlv  m  to  point  out  the  evil  consequences 
of  the  order .  This  they  have  attempted  to  do, 
hut  he  thong!  t  with  no  very  great  success.  It 
has  been  boffiy  asserted,  that  the  Treasury  order 
h-al  deranged  the  currency^  and  occasioned  the 
existing  d  fficulties  and  pressure  in  regard  to  mo 
oey,  which  he  admitted  to  be  very  severe.  This, 
sir,  (said  Mr.  N  )  is  no  new  complaint  against  the 
present  administration.  It  is  the  old  story  which 


has  been  so  often  repeated  within  the  last  few 
years,  that  its  authors  on  the  present  occasion 
can  1  ay  no  claims  to  originality.  On  his  way  to 
this  ci  v,  during  a  short  detention  in  New  York, 
he  had  a  conversation  with  a  merchant,  who  com¬ 
plained  not  only  of  the  times,  but  of  the  Govern¬ 
ment.  It  vr.'s,  however,  only  a  ^petition  of  the 
old  story,  of  tampering  with,  the  currency! — war 
upon  the  currency!  When  will  the  Government 
ccope  tampering  with  the  currency?  These  cotn- 
plahyts  come  with  an  ill  grace  from  bankers,  bro¬ 
kers,  an  *  merchants,  who 'are  strenuous  support¬ 
er?  of  that  inflated  m  stem  of  paptr  money  and 
credit,  whose  inherent  defects  aie  the  source  of 
the  ve»-y  evils  which  they  denounce.  Mr.  N.  said, 
that  when  he  heard  complaints  4 ike  these,  he  was 
forcibly  y  minded  of  an  anecdote  <  f  Dr.  Franklin,, 
who,  when  in  Europe,  was  a  member  of  a  learned 
sock  ty,  which  had  a  regulation,  that  on  certain 
.occasions  each  member  was  to  suggest  some  pro¬ 
blem  in  physical  ^science,  and  each  one  present 
was  to  g:ve  an  explanation  impromp’u.  The  Doc¬ 
tor,  who  was  fon$l  of  starting  game  for  philoso¬ 
phers,  as  he  called  it,  proposed  this  question? 
“  How  it  was  to  be  accounted  for,  that  a  barrel  of 
fish  would  contain  mor  salt  that  the  barrel  with¬ 
out  the  figli?”  The  explanations  given  by  the 
learned  savam,  although  extremely  ingenious,  did 
not  appear  to  be  entirely  satisfactory.  At  last  nil 
eyes  were  turned  towards  the  Doctor,  who,  it  was 
suppos  d,  c  uld  give  a  satisfactory  solution  of  a 
problem  he  had  suggest*  d.  “Gentlemen,”  said  he, 
“m  the.  first  place  the  foci  is  net  so?'  So  in  regard  to 
the  compla’nts  of  merchants  and  poli-  icians.so  often 
repeated,  of  tampering  with  the  currency,  it  is 
a  sufficient  answer  to  say,  the  fact  is  not  so.  These 
charges  are  without  foundation,  evert  if  we  con¬ 
sider  currency  in  the  very  comprehensive  sense 
in  which  it  appears  to  be  regarded  by  the  Senator 
from  Massachusetts,  (Mr.  Webster,)  who,  if  he 
correctly  understood  him,  appears  to  consider 
currency  as  comprehending  not  only  bsnk  bill?, 
but  bills  of  exchange,  and  every  desf i  ipticn  of 
paper  which  was  used  to  facilitate  the  transactions 
of  commerce.  This  appeared  to  him  to  be  al¬ 
together  too  comprehensive  a  view  of  me  subject 
of  currency,  even  in  a  commercial  sen  e.  It  ap¬ 
peared  to  be  confourding  currency  and  credit, 
which  lie  bad  supposed,  were  essentially  distinct. 
In  the  Small  book  which  every  Senator  lias  on  his 
Uble,  (containing  the  constitution  of  the  United 
States,)  is  a. 


much  better  definition: 


he 


there 

found,  that  ‘*Gongre  s  shad  have  power  to  coin 
money,  regulate  tl  e  value  thereof,  and  of  foreign 
co  il.”  H^re  we  find  what  is  th-;  legal  and  con¬ 
stitutional  currency  of  the  Unit'd  Stales,  Gold 
and  silver,  either  the  coi  isgeof  the  United  States, 
or  foreign  coin,  the  value  <  f  which  lias  been  fixed 
and-rt  gulated  by  a  law  of  CVngress,  constitute  the 
only  currency  known  to  the  constitution. 

But  in  a  commercial  sense,  or  in  the  common 
acceptation,  whatever  circulates  as  money,  and  is 
received  ns  such,  in  the  ordinary  transactions  of 
society,  may  be  considered  as  a  part  of  the  cur¬ 
rency  of  the  country;  and  in  this  view  of  the  sub¬ 
ject,  bank  bills  form  a  part  of  our  currency.  But 
if  we  admit  th<3  bibs  of  our  banks  to  be  a  com¬ 
ponent  part  of  the  currency  of  the  country,  still 


7 


the  complaints,  of  which  we  have  heard  so  much 
for  some  years  past,  are  without  any  just  founda¬ 
tion.  What  are  the  acts  of  this  administration, 
which  have  been  denounced  as  tampering;  with 
the  currency,  and  making  war  on  the  currency? 
The  first  of  them  is  the  veto  of  the  President,  of 
the  bill  for  rechartering  the  Bank  of  the  United 
State?.  This  may  have  been  a  bold  measure, -but 
great  evils  require  powerful  remedies;  and  it  was 
confirmed  and  fully  sustained  by  the  people,  and 
afterwards  by  Congress,  which  refused  to  give  the 
hank  another  charter.  If  this  measure  had  suc¬ 
ceeded  in  •destroying  the  Bank  of  the  United 
States,  it  might  be  considered,  in  so’me  measure, 
as  interfering  with  the  currency  of  the  country,  if 
it  can  be  made  out  that  the  bills  of  that  bank  pos¬ 
sessed  any  essential  qualities  as  money,  or  curren- 
.  cy,  which  do  not  appertain  to  tire  bills  of  the  State 
banks.  But  lie  did  not  consider  that  the  bills  of 
that  bank  possessed  any  material  advantages,  as 
money,  over  those  of  the  State  banks;  fqr  such 
were  its  regulations,  that  the  different  branches,  so 
far  as  respects  the  redemption  of  their  bills,  were 
so  many  independent  banks.  It  was  not  necessa¬ 
ry,  however,  to  consider  this  question,  because  the 
bank  had  not  ceased  to  exist.  No,  unfortunately 
for  the  country',  the  “monster”  still  lives;  and,  ac¬ 
cording  to  the  declarations  of  its  president,  at  the 
very  time  of  its  resuscitation,  under  a  charter  obtain¬ 
ed  from  one  of  the  States,  it  inherits  a  circulation 
of  twenty-two  millions,  and  a  credit  throughout 
'the  world.  We  have  the  word  of  its  presid  nt 
that  the  bank  still  possesses  its  essential  ability  to 
do  good,  and,  in  the  opinion  of  many,  it  has  lost 
none  of  its  powers  of  mischief.  Whether  for 
good  or  for  evil,  then,  the  bade  still  exists,  and  the 
country  h±s  the  benefit,  if  such  it  is,  of  that  paper 
currency  which  it  can  supply. 

I’he  next  act  which  has  been  condemned  as  an 
act  of  wap  upon  the  currency,  is  the  Treasury  or¬ 
der  for  removing  the  public  deposites  in  1833. 
This,  as  is  well  known,  occasioned  great  excite¬ 
ment;  the  measure  was  denounced  in  this  Hall  and 
elsewhere,  as  illegal, unconstitutional,  and  analarm- 
ing  usurpation,  calculated  to  derange  the  currency, 
destroy  public  and  private  credit,  and  prostrate  the 
entire  business  of  the  country.  Now  the  excite¬ 
ment  has  gone  by,  and  the  angry  waves  subsided, 
an  1  the  measure  already  become,  in  some  sense* 
a  matter  of  history,  we  can  look  back  upon  it'  dis¬ 
passionately  and  calmly.  And  what  wait  this  alarm¬ 
ing  act  of  usurpation,  this  war  upon  the  currency 
and  credit  of  the  country,  which  was  to  paralyze 
all  the  great  interests  of  the  nation?  He  did  not 
^  speak  with  any  reference  to  its  legality  or  consti¬ 
tution?  lity,  but  solely  with  regard  to  its  effect  bn 
the  currency  and  credit.  Why*  sir,  said  Mr.  N. 
this  measure  consisted  simply  of  an  order  from  the 
Secret  .t-y  of  the  Treasury  changing  the  place  of 
deposite  of  the  public  revenue,  at  a  time  when  the 
money  in  the  Treasury  amounted  to  but  about  nine 
millions  of  dollars.  The  measure  related  only  to 
the  money  of  the  United  States;  it  had  no  applica¬ 
tion  whatever  to  the  currency  of  the  country, 
whether  metallic  or  paper;  it  had  no  operation 
upon  commerce,  or  duties,  or  importations.  This 
act,  which  w  as  said  to  derange  the  currency  and 
destroy  credit,  was  nothing  more  than  the  control 


and  management  of  the  funds  belonging  to  the 
people  of  the  United  State?,  in  no  way  interfering 
with  the  transactions  of  comm  -rce,  or  currency,  or 
credit.  Cannot  the  Government  take  c»re  of 
their  own  funds,  ar.d  manage  them  as  they  t  .ink 
best,  without  being  charged  w.th  making  war  on 
the  currency?  without  an  outcry  from  bankers, 
brokers,  and  mere  h  nts,  that  their  business  is  in¬ 
jured,  arid  the  whole  country  exposed  to  r  in? 
Must  the  Secretary  of  the  Treasury  c  irr.It  the 
bankers  befcye  lie  can  deck! .  on  any  measure  in 
relation  to  the  public  funds?  If  an  act,  having  no 
bearing  on  commerce,  in  no  way  directly  affecting 
any  of  the  interests  of  the  country,  and  which 
rely  changed  'he  plkces  of  deposits  <  the  pub¬ 
lic  revenues,  could  have/  occasioned  the  serious 
consequences  which  were  charged  upon  it — the 
derangement  of  the  currency,  p.ostration  of  cre¬ 
dit,  tire  wide  spread* embarfassments  anil  distress 
which  prevailed — the  case  would  afford  the 
strongest,  th'e  most  irresistible  argument  u.ainst 
the  whole  paper  credit  system.  If  these  conse¬ 
quences  did  follow  from  so  small  a  cause,  it  pi  oves 
the  miserable,  wretched  condition  of  your  paper 
currency,  which  the  Senator  from  Massachusetts 
seems  to  consider  as  preferable  to  gold  an  1  silver. 

Unstable  and  bad  as  he  considered  the  paper 
currency  of  the  country,  he  would  m  ike  no  such 
charge  against  it;  he  did  not  believe  it  could  be 
deranged,  and  the  whole  country  involved  in  diffi¬ 
culty  and  distress  by  so  trifling  a  cause.  No,  sir, 
there  was  at  that  period  a  war  upon  the  currency  $ 
but  it  did  not  come  from  the  Executive,  or  this  Go¬ 
vernment  but  from  the  Bank  of  the  United  States, 
and  other  banks  which  from  fear  or  favor  co-ope¬ 
rated  with  it  in  its  measures  int  nded  to  dis¬ 
tress  the  country,  and  create  a  panic.  That  war 
on  the  currency  and  on  the  country  came  from 
the  great  mammoth  of  the  paper  system,  which 
possessed  more  power  over  tie  currency  than  tbits 
Government — which  could  make  paper  money 
plenty  or  scarce,  at  its  pleasure.  At  this  clay,  lie 
believed  r.o  one  could  be  found  who  would  main¬ 
tain  that  the  embarrassments  and  distress  which 
prevailed  during  almost  the  entire  year  of  1334, 
were  occasioned  by  the  ch  nge  which  was  made  iu 
the  management  of  the  public,  r;  venue. 

Mr.  N-  said  he  now  came  to  consider  the  last 
measure,  which  had  been  condemned  as  a  umpir¬ 
ing  with  the  currency — the  'Treasury  order  of  the 
11th  July — requiring  cash  payments  for  the  public 
lands  It  is  ct  imed  that  the  money  pressure 
which  has  prevailed  for  months  past,  and  which 
still  continues,  lias  been  occasioned  by  this  new  re¬ 
gulation  as  to  the  sales  of  the  public  lands.  Tiie 
Senator  from  Massachusetts  (Mr.  Webster)  Jid  not 
seem  to  advance  this  opinion  with  confidence;  he 
said  there  was  a  complication  of.causes;  that  this 
order,  with  other  causes,1  had  occasioned  the  exist¬ 
ing  difficulties;  but  when  lie  came  to  point  out  the 
other  causes,  they  did  not  appear  to  ne  very  nu¬ 
merous  or  complicated,  and  all  of  them  ceWered 
in  the  Executive  Department  of  thb  Government. 
The  complication  of  causes  appeared  to  consist  of 
but  two;  the  Treasury  order,  and  the  execution  of 
the  depositeact,  or  the  apprehension  of  the  man¬ 
ner  in  which  that  act  was  to  be  execute  !.  That 
the  deposite  act  had  contributed  to  increase  the 


8 


money  pressure,  Mr.  N.  did  not  doubt;  but  what  ]  the  cause,  he  would  like  to  know  what  it  was. 
properly  belonged  to  the  act,  ought  not  to  be  j  Has  li  tre  not  been  an  alarming  increase  of  bank 
charg  'd  to  the  execution,  or  the  apprehended  ex-  j  capital,  and  of  course  of  bank  circulation,  the  last 
edition.  He  reluctantly  gave  his  support  to  that  j  few  years?  The  bank  capital  of  the  State  banks 
act,  although  sensible  at  the  time  that,  it  would  in- ;  was  estimated  by  Mr.  Gallatin,  in  1830,  at  ninety- 
crease,  iv  tiier  than  relieve,  the  pressure  for  money,  j  five  millions  of  dollars,  and  the  bank  circulation  at 
which  prevailed.  Rut  it  had  rot  been  shown  that I  thirty  n  ne  millions.  The  annual  report  of  the 
any  censure  was  justly  chargeable  upon  the  Secre-  Secretary  of  the  Treasury,  a  year  ago,  contained 
tary  for  the  execution  of  the  law.  It  was  impossi-  returns  from  nearly  all  the  State  banks;  according 


ble  but  that  the  act  should  occasion  some  tempura 
ry  inconvenience  in  the  monetary  concerns  of  the 
country.  It  disposes  of  a  large  sum  of  money, 


to  which,  the  capital  of  the  State  banks,  on  the  1st 
of  January,  1835,  amounted  to  about  ninety-six 
millions,  and  their  circulation  to  about  e'ghty-six 


nearly  forty  miliipn?,  upon  principles  altogether  millions.  Since  that  period,  the  increase  of  bank 
foreign  to  the  commercial  principles  which  coil- 1  capital  has  been  astonishingly  rapid.  It  is  thought' 
troi  and  re  gulate  the  moneyed  capital  of  the  coun-  i  to  have  'exceeded  one  hundred  millions,  and  the 
try.  Population  is  not  the  principle  uptrn  which,} circulation  to  have  been  increased  fifty  millions. 


commerce  distributes  money. 

Mr.  N.  raid  that  in  relation  to  the  Treasury  'order, 
he  would  not  deny  that  in  some  small  degree  it 
may  have  increased  the  difficulties  which  exist.  It 


But  ia  addition  to  this,  the  Hank  of  the  United 
States  has  been  rechartered  the  year  past,  w  ith  a 
capital  of  thirty-five  millions,  and  has  the  posses- 


had  increased  the  demand  for  specie,  and  that  was 


c: 


the  principal  object  of  the  measure,  to  obtain 
semeihirg  of  real  value  for  the  public  lands.  Its 
operation  iias  been  to  replenish  the  deposite  banks 
in  the  west  with  specie  funds,  and  to  draw  them 
from  the  banks  at  the  esrt,  which  has,  to  some 
extent,  diminished  the  ability  of  the  latter  to 


1  ion  of  seven  millions  belonging  to  the  United 


States*  making  a  capital  of  forty-two  millions. 


During  the  past  year, there  has  also  been  a  sum  of 
from  thirty  to  forty  millions  of  dollars  of  the  pub¬ 
lic  revenue  in  the  deposite  baiyks,  which  has  been 
used  for  banking*  purposes,  and  constituted  a  part 
f  f  their  capital.  ,  The  whole  addition  to.the  bar.lc- 
i jig  capital  of  the  country,  since  January,  1835, 


make  leans.  Out  a  contraction  of  the  paper  cur-  roust  considerably  exceed  one  hundred  and  fifty 


rency  had  long  before  commenced;  and  that  con- 
traction  must  necessarily  produce  a  curtailment  in 
the  loans  arid  discounts  of  banks.  The  Treasury 
order  only  co-operated  with  other  causes  in  pro¬ 
ducing  results,  which  were  inevitable.  To  regard 
the  1  rearm  v  order  as  the  c  fficient  cause  of  the  pre¬ 
sent  crisis,  would  be  like  an  attempt  to  find  one’s 
wa>  In  a  taper,  ar.d  close  his  eyes  to  the  sun,  which 
was  enlightening  the  world.  The  real  cause  of 


the  existing  pressure  is  much  broader  ard  deepen 
than  the  Treasury  order;  it  is  a  cause  which  is 


inherent  in  the  banking  system,  ar.d  in  that  paper 
currency  which  wc  have  just  heard  commended 
as  preferable  to  gold  aftd  silver.  There  are  laws 
which  act  upon  and  control  the  paper  system  of 
currency,  supplied  by  banks,  which  are  as  immu¬ 
table  as  those  that  govern  the  physical  universe. 
One  of  these  lavs  is,  that  a  sudden  expansion  of. 
the  currency,  even  to  an  inconsiderable  amount, 
g  v  s  an  U'K.ue  :  timnius  to  enterprise,  that  o  ca- 
sions  overtrading  and  speculation,  which  will  con¬ 
tinue  to  increase,  until  they  are  checked  by  a  re¬ 
action  in  the  money  market,  when  a  contraction 
of  the  currency  ensues,  by  the  banks  being  oblig¬ 
ed  to  curtail  their  discounts.  This  occasions  a 
scarcity  of  money. 

Kut  it  seems  to  be  denied  that  there  has  been 
any  dangerous  or  essential  enlargement  of  the 
paper  currency.  The  Senator  from  Massachu- 
t>rtit.  arum's  that  there  has  been  a  great  augmenta¬ 
tion  of  hanking  capital  within  the  last  two  or 
three  year.*,  but  attributes  it  to  the  rapid  and  un¬ 
paralleled  advance  in  the  value  of  real  estate  and 
other  property*.  It  appeared  to  him  this  was  faking 
the  effect  for  the  cause.  What  has  occasioned  the 
rapid  rise  in  the  price  of  re  l  estate  and  other  r>ro- 
pei  tv?  la  it  not  the  flood  of  paper  money  wit!',  which 
the  country  has  been  inundated  for  the  last  few 
years,  and  the  wide  spread  and  extravagant  specu- 


miilions  of  dollars,  and  the  addition  to  the  circula¬ 
tion  fifty  millions. 

In  his  report,  the  present  session,  the  Secretary' 
estimates  tiie  circulation  of  bank  paper,  on  the 
first  of  the  present  month,  at  one  hundred  and 
twenty  millions;  but  thinks  that  in  July  it  consi¬ 
derably  exceeded  that  sum.  Mr.  N.  thought  this 
estimate  below  the  truth.,  because  it  was  found  that 
the  issues  of  banks,  would  bear  a  certain  propor¬ 
tion  to  their  capitals.  If  it  was  true,  as  was  sup¬ 
posed  by  Adam  Smith,  who  w  rote  at  a  time  when 
the  subject  o;  banking  was  very  imperfectly  un¬ 
derstood,  that  no  more  paper  money  could  be  cir¬ 
culated  than  would  supply  the  specie  which  it  forc¬ 
ed  out  of  circulation,  the  creation  of  banking  capi¬ 
tal  would  not  add  to  the  paper  currency,  hut  that 
principle  is  incorrect;  the  paper  issues  of  banks 
re  found  to  depend  mainly  on  the  capital  which 
shall  be  employed  in  banking  operations.  What 
proportion  the  circulation  will  bear  to  the  bank¬ 


ing  capital  was  not  clearly  established,  -  but  it 


t 


would  not  vary  far  from  thirty  per  cent.  If  gen¬ 
tlemen  will  look  into  the  report  of  the  Secretary 
of  the  Treasury,  jus  laid  on  our  tables,  they  will 
find  that  the  deposite  banks,  with  a  capital  of  se¬ 
venty-seven  millions,  have  a  circulation  of  forty- 
one  millions,  or  more  than  fifty  percent.  These 
banks,  it  is  true,  possess  large  sums  in  deposite, 
so  that  their  circulation  is,  no  doubt,  considerably 
larger,  in  proportion  to  their  capital,  than  the 
general  average. 

Sir,  (said  Mr.  N.)  are  we  to  he- told  in  the  face 
of  'hese  strong  facts,  that  there  has  been  no  undue 
enlargement  of  the  paper  currency  and  the  credit 
system  the  last  two  years?  Are  we  to  believe  that 
rhis  increase  has  been  occasioned  by  the  general  • 
tise  in  the  value  oft  property?  Has  property  ad-  l> 
vanced  nearly  fifty  per  cent,  in  two  years?  And 
if  such  was  the  fact,  what  reason  can  be  assigned 


lations  to  which  it  has  given  rise?  If  that b  not  ^orsuc^1  fcn  unprecedented  advance  in  the  value 


0 


of  jropertv'  in  so  short  i  period,  except  the  su¬ 
perabundance  of  the  paper  currency? 

That  the  flood  of  p  iper  money,  and.  the  great 
extension  of  bank  credits,  were  t tie  original  and 
efficient  'cause  of  the  'embarrassments  and  diffi¬ 
culties  which  had  prevailed  for  nearly  one  yer, 
was  cle.ir  beyond  any  reasonable  doubt.  Evert  a 
very  small  a  (lit  on  to  the  currency  excites  to  over 
tra  ing  and  speculation,  and  an  advance  of  prices. 
This  his  been  found  to  be  invariably  the  case  in 
England  and  in  this  country  since  the  establish¬ 
ment  <  f  the  Hank  of  the  United  States.  Ah  pe¬ 
riods  of  excitfement  and  speculation, *in  both  coun¬ 
tries,  have  been  preceded  by  an  increase  oi  mo¬ 
ney  or  credit,  or  both  The  year  1835  and  the 
fii-it  hal  of  the  year  1836,  have  been  distinguish¬ 
ed  for  spcculai  on  in  stocks,  real  estate  and  eve¬ 
ry  kind  of  property,  and  for  the  unprecedented 
TTiultip  icutiou  of  joint  stock  companies,  for  almost 
every  conceivable  object.  •  A  reaction  has  en¬ 
sued,  and  there  is  now  great  distress  in  that  coun¬ 
try  for  money,  as  well  as  in  this.  This  spirit  of 
speculation  and  gambling  is  there  attributed  to  an 
expansion  ef  the  paper  currency,  although  tke  in- 
►  cre:u»e  of  paper  appears  to  be  trifling,  compared 
to  uh.it  has  taken  place  in  this  country.  In  1833, 
^ 'there  were  hut  thirty-four  joint  stock  bar  ks  in 
England,  and  in  July,  1836,  they  had  increased  to 
seventy -seven.  Their  issues  in  1834  were  £  1,783,- 
600,  and  in  1836,  £3,094,025,  being  an  increase  of 
less  then  a  million  and  a  half.  In  the  meantime, 
tiie  priv:  te  b  inks  had  not  increased,  but  to  a  small 
amount  had  Contracted  their  issues.  So  small  an 
addition  to  the  paper  currency  as  tins  is  consider¬ 
ed  as  the  cause  of  the  rage  of  speculation  and 
gambling  which  has  prevailed,  and  of  the  distress 
that  has  followed. 

Mr.  N.  said  that  in  support  and  corroboration 
of  these  views,  he  would  ask  the  Secretary  to 
read  some  short  extracts  from  two  pc  cent  writers 
in  that  country',  which  lie  had  copied: 

Extract  from  Musket. 

“  In  1819,  the  flank  of  England  and  the  coun¬ 
try'  banks  curtailed  their  issues  about  15  ptr  cent, 
and  consols  fell  about  14  per  cent  ;  in 
1820,  the  count  y  banks  curtailed  32  per  cent* 
in  1 8-21,  28  per  cent.  A  fab  of  prices,  and  scarcity 
of  money  f  ol  lowed;  and  1819,  *20,  and  *21,  wore 
years  of  great  distress  in  England.  One  of  the 
gi'eat  eviU  from  the  gre  it  fluctuation  in  the  amount 
of  the  currency,  is  the  spirit  of  gambling  which  it 
engenders.  It  is  the  sudden  abundance  of  money, 
which  is  the  ma  n  spring  of  alt  gamhl  ng  transac¬ 
tions  in  our  funds,  and  in  articles  of  general  con¬ 
sumption;  and  the  ri-e  in  prices  is  forced  by 
speculative  buying  and  selling,  considerably  be¬ 
yond  the  actual  increase  of  the  currency'.  it  is  to 
this  cause  alone,  and  under  e  very  circumstance, 
which,  a.  a  nation,  we  can  lie  placed,  that  i  attri¬ 
bute  the  w  hole  ol  the  speculations,  now  and  here¬ 
tofore,  that  have  appeared  to  begin  in  pf asperity, 
and  to  till  in  (lie  distress  and  rui  >  of  thousands. 

1'be  speculative  rise  probably  exceeds  the 
addition  to  the  squares  aided.  if  2  per  cent,  is 
prices  will  rise  8;  if  8,  thirty-two  per  cent. 
If,  on  tiie  other  hand,  there  is  a  contraction  of  8 
per  cent,  it  will  be  attended  with  a  fall  of  public 
credit  and  confidence  in  buying  and  selling.  These 


are  lh.:  evils,  and  they  are  evils  of  grcatnugni- 
tude,  that  atti  nd  jhe  use  of  tiie  paper  currency. 
There  is  a  range  of  contraction  arid  expansion  in 
the  use  of  paper,  that  does  not  belong  to  a  metallic 
currency',  and  which  pe  haps  do  s  more  than 
counterbalance  all  the  advantages  to  a  nation  from 
\  the  use  of  paper.” 

Extract,  from  the  Edinburg  It  view,  l'>l.  4,  Xo.  2. 

In  a  country  so  opulent  as  this,  and  so  rapid¬ 
ly  increasing  in  wealth  and  popul  il  on,  the  two 
1  great  ardor  61’  speculation,  and  t:ie  mi, calculation 
of  producers,  must  necessarily  sometitnes  occa¬ 
sion  overtrading,  and  consequently  gluts  and  de¬ 
presses  of  the  market.  But  were  the  currency 
in  a  perfectly  sound,  state,  the  e'  citi  inent  arising 
from  such  causes  would  a'mnst  necessarily 
be  confined  to  one  or  a  very  few  businesses, 
and  wou'd  be  very  f.r  indeed  from  be¬ 
ing  either  general  or  Universal.  In  point  of 
fact,  all  periods  <f  general  ixcifeinent .  or  j>eriods 
marked  by  a  general  len  iency  to  speculation,  and 
by  u  general  rise  of  prices,  have  both,  in  this  and 
other  countries,  been  uniformly  distinguished  by 
some  extraordinary  Jhciliies  in  obtaining  supplies 
of  money  or  of  credit,  or  of  both  »Ve  are  bold  to 
to  say,  that  no  single  instance  to  the  contrary  can  be 
pointed  out  in  the  history  of  industry  in  modern 
limes.” 

Mr*.  N.  said,  that  the  opinions  of  these  two  en¬ 
lightened  writers  in  pointing  out  the  eviisof  a  paper 
currency,  contained  a  satisfaetpry  explanation  of 
the  true  or  gin  of  the  pecuni  vy  difficult  es  which 
now  exist  in  this  country.  There  was  u«>  Treasury 
order  in  England,  no  tampering  with  the  currency, 
so  fm  as  tiie  Government  was  concerned,  yet  the 
same  evils  had  been  experienced  there- 

A  paper  currency  was,  from  the  very  nature  of 
it,  unstable,  and  subject  to  Constant  fluctua¬ 
tions.  Such  had  been'  its  character  in  England, 
and  in  this  country  particularly.  Since  the  estab¬ 
lishment  of  the  late  Bank  of  the  Unite  I  States,  it 
hand  been  still  more  unstable.  Those  wl  o  sup¬ 
pose  that  reactions  and  p-  rials  of  distress  were 
only  occasional,  and  the  result  of  extraordinary 
causes,  were  entirely  mistaken.  They  are  evils 
inherent  in  the  system,  and  inseparable  from  it. 
Whoever  will  look  back  to  the  period  of  the  es¬ 
tablishment  of  the  Bank  ot  the  United  Stales,  will 
find  that  such  lias  been  the  cae  in  t  iis  country, 
the  severe  and  universal  distress  which  prevailed 
throughout  the  Union  in  1819  .mil  *20,  will  long 
be  remembered.  In  1822,  mon  y  again  became 
scare'  ,  and  in  1825  there  was  great  cl  s  ress  in  the 
United  States,  as  well  as  in  England,  where  the 
pressure  was  universal  and  desolating  hi  its  conse¬ 
quences.  So  great  was  the  calamity,  that  it  was 
found  necessary  to  take  away,  in  part,  thi  monopo¬ 
ly  of  the  Bank  of  England,  and  authorize  the  es¬ 
tablishment  of  joint  stock  hanks,  as  a  me  ms  of 
relief.  In  1826.  money  wasscirce  in  New  York; 
and  in  the  winter  of  1827,  ’8,  in  the  mi  die  and 
eastern  States.  In  1829,  many  banks  f  iled,  and 
there  was  great  distress  among  the  manufacturer* 
in  the  eastern  States.  In  the  latter  part  of  1832, 
money  again  became  scare' ;  nnl  nearly  the  entire 
year  of  1834  was  distinguished,  not  only  fora  plea¬ 
sure,  but  for  a  panic,  unexamph  d  in  this  country. 
The  evils  of  this  period  are  too  fresh  in  the  memo- 


10 


ry  of  every  one,  to  render  it  necessary  to  enlarge 
upon  them. 

In  confirmation  of  these  facts  and  views, .lie  would 
beg  leave  to  read  a  letter  which  has  been  publish¬ 
ed;  it  is  from  no  visionary  theorist,  or  anti-bank 
man,  but  from  a  responsible  officer,  the  cashier 
of  the  Branch  of  the  United  States  Bank  in  Bal¬ 
timore,  in  1830,  and  was  addressed  to  the  Secreta¬ 
ry  of  the  Treasury.  It  bears  date,  February  15, 
1830. 

“Looking  back  to  the  peace,  a  short  period,  fresh 
in  the  memory  of  every  man,  the  wretched  state 
of  the  currency  for  the  two  succeeding  years  can¬ 
not  be  overlooked.  The  disasters  of*  1819,  which 
seriously  affected  the  circunns'ances,  property  and 
industry  ofevery  dht. ict  in  the  United  States,  will 
long  be  recollected.  A  sudden  and  pressing  scarci¬ 
ty  of  money  prevail*  d  in  1822;  numerous  and  vefy 
extensive  failures  tor>k  place  in  New  York,  Savan¬ 
nah,  Charles’ on,  and  New  Orleans,  in  1825.  There 
was  a  great  convulsion  among  banks  and  other 
moneyed  institutions,  in  1826  The  scrcity  of  mo- 
ney  among  traders  in  that  State  and  eastward,  in 
the  winter  of  1827-8,  was  distressing  and  alarm¬ 
ing.  Failures  of  banks  in  North  Carolina  and 
Rhode  Island,  and  amongst  the  manufacturers  of 
New  England  and  this  State  (Maryland,)  charac¬ 
terized  the  last  year,  (1829);  and  intelligence  is 
just  received  of  the  refusal  of  some  of  the  prin¬ 
cipal  banks  of  Georgia  to  redeem  their  notes  with 
specie — a  lamentable  and  rapid  succession  of  evil 
and  untoward  events,  prejudicial  to  the  progress 
of  productive  industry,  and  causing  a  baleful  ex¬ 
tension  of  embarrassment,  insolvency,  litigation 
and  dishonesty ,  alike  subversive  of  social  happiness 
and  morals.  Every  intelligent  mind  must  express 
regret  and  astonishment,  at  the  recurrence  of  these 
disasters  in  tranquil  times  and  bountiful  seasons, 
amongst  an  enlightened,  industrious  and  enterpris¬ 
ing  people,  comparatively  free  from  taxation,  un¬ 
restrained  in  their  pvt; suits,  possessing  abundance 
of  fertile  lands  and  valuable  minerals,  with  capital 
and  cap  acity  to  improve,  and  an  ardent  disposition 
to  avail  ourselves  of,  th*se  great  bounties. 

“Calamities  of  an  injurious  and  demoralizing  na¬ 
ture,  occurring  with  singular  frequency  amidst  a 
profusion  of  the  elem  nts  of  wealth,  are  well  cal¬ 
culated  to  inspire  and  enforce  the  conviction,  that 
there  is  something  radically  erroneous  in  our 
monetary  system,  were  it  not  that  the  judgment 
hesitates  to  yield  assent,  when  grave,  enlightened 
and  patriotic  Senators  have  deliberately  announ¬ 
ced  to  the  public,  in  a  recent  report,  that  our  sys¬ 
tem  of  money  is  in  the  main  excellent,  and  that  in 
most  of  its  great  principles  no  innovation  cfeui  be 
made  to  advantage.” 

Mr.  N.  said  that  the  letter  which  he  hacljust 
read  contained  more  truth  and  hones' y  fhan  all 
the  c<  mmunications  which  had  ever  appeared 
from  the  head  of  that  banking  institution,  of  which 
the  writer  of  this  letter  was  an  officer.  It  pre¬ 
sented  a  faithful,  but  melancholy  picture,  of  the 
operations  of  our  banking  and  credit  system. 

With  such  facts  as  these,  and  the  experience  of 
the  1  ast  twenty  years  before  us,  he  thought  it  was 
trifling  with  common  sense  to  talk  about  the  Trea¬ 
sury  order  being  the  cause  of  the  existing  difficul¬ 
ties.  Sir,  (said  Mr.  N.)  the  came  of  these  evils 


lies  deeper  and  broader;  it  exists  in  your  paper 
currency  and  banking  system.  The  order  has, 
no  doybt,  in  some  small  degree,  contributed  to  in¬ 
crease  the  pressure;  and  this  is  also  true  of  the 
deposite  act.  They  have  served  to  bring  on  the 
crisis  a  little  sooner  than  it  might  otherwise  have 
come,  but  the  disease  was  upon  us,  and  must  have 
its  course. 

If  we  were  to  look  to  any  secondary  causes,  that 
of  a  wild  spirit  of  speculation  stands  pre-eminent;  \ 
ar.d  particularly  speculation  in  public  lands.  But 
speculation  is  stimulated  by  our  system  of  cur¬ 
rency  and  credit.  The  immense  purchases  of  the 
public  lands  during  the  last  two  years  have  filled 
your  Treasury  to  overflowing;  more  than  forty 
millions  had  been  received  from  the  sales  of  the 
public  domain.  Tills  immense  capital  had  been 
withdrawn  from  its  accustomed  employment. 
This,  ofitself,  was  sufficient  to  derange  the  whole 
business  of  the  country. 

The  pe  riod  of  distress  to  which  he  had  particu¬ 
larly  referred,  was  also  distinguished  by  specula¬ 
tions  in  the  public  lands.  They  commenced  in 
1818;  the  sales  that  year  exceeded  seven  millions 
of  dollars;  in  1819,  they  were  more  than  seventeen 
millions,  -and  the  first  two  quarters  of  1820 
amounted  to  the  enormous  sum  of  twenty-seven 
millions.  In  July  the  law  went  into  operation, 
requiring  cash  payments;  and  so  entirely  did  the 
sales  depend  on  credit,  that  they  were  almost 
en’irely  suspended,  and  the  last  half  of  that  year 
amounted  to  only  about  four  hundred  thousand 
dollars;  and  for  the  four  succeeding,  did  not  ave¬ 
rage  one  million  a  year.  Speculations  in  the  pub¬ 
lic  lands  again  commenced  in  1834,  when  the  sales 
amounted  to  about  eight  millions;  in  1835,  to  fif¬ 
teen  millions,’  and'  the  present  year  to  more  than 
twenty-four  millions,  including  the  sales  of  the 
Chickasaw  lands,  which  do  not  go  into  the  Trea¬ 
sury.  That  a  reaction  should  follow  this  reckless 
spirit  of  speculation,  was  inevitable. 

Mr.  N.  said  lie  thought  that  the  attempt  to 
charge  the  embarrassments  and  pressure  for  mo¬ 
ney  upon  the  Treasury  order,  had  entirely  failed. 
He  believed  the  order  to  he  legal,  and  was 
satisfied  that  it  had  had  but  little  agency  in 
causing  tile  existing  crisis.  Still  it  was,  in  his 
mind,  a  question  whether  the  princip:e  of  that 
order  ought  to  be  maintained.  He  considered  it  as 
a  temporary  measure,  well  calculated  to  remedy 
existing  evils  of  the  most  alarming  magnitude. 
But  he  was  not  prepared  to  say  that  it  would 
do  as  a  permanent  regulation.  The  strongest  rea¬ 
son  for  its  adoption  was  to  guard  against  the  flood 
of  paper  money  which  was  flowing  with  a  swellin/y 
tide  into  the  deposite,  banks  from  the  sales  of  tire 
public  lands.  This  evil  he  hoped  would  be  cor¬ 
rected  By  legislation  before  Congress  adjourned, 
which,  so  far  as  that  object  was  concerned,  would 
supersede  the  Treasury  order.  But  still  the  ques¬ 
tion  is  before  us,  and  may  have  to  be^decidf  d,  in 
what  currency  shall  the  public  revenue  be  collect¬ 
ed?  This  was  a  question  of  great  delicacy  and 
magnitude.  Great  as  lie  considered  the  evils  of 
our  paper  s}'stem  of  money  and  credit,  lie  did  not 
see  how  this  Government  could  provide  a  remedy. 

It  certainly  could  not  do  it  by  any  direct  legisla¬ 
tion;  it  had  no  power  over  the  State  banks,  or 


11 


their  issues.  The  only  power  it  could '’exercise 
upon  the  paper  currency  of  the  State  banks  was 
indirectly  in  the  collection  and  disbursement  of  the 
revenue,  and  this  was  no  small  power,  especially 
at  a  time  like  the  present,  when  the  revenues 
amounted  to  more  than  forty  millions.  A  large 
portion  of  the  whole  currency  of  the  country  pas¬ 
ses  through  your  Treasury  annually. 
if  Mr.  N.  said  he  was  not  prepared  to  say  to  what 
extent  this  power  could  safely  be  exercised.  He 
was  satisfied,  however,  that  it  would  not  do  at  th  s 
time  to  collect  the  revenue  in  specie^exciusively . 
Congress  had  no  doubt  a  right  to  do  this;  but  in 
the  collection  of  so  large  an  amount  of  revenue,  V.  e 
must  have  some  regard  to  the  business  of  the  coun¬ 
try,  and  to  the  ordinary  currency  used  in  commer¬ 
cial  and  other  transactions.  It  is  evident  that  we 
might  adopt  a  r  ile  which  would  occasion  great 
inconvenience,  and  perhaps  injustice,  because  the 
large  sums  of  money  received  into  the  Treasury 
cannot  well  be  collected  in  a  currency  not  in  gene¬ 
ral  use.  Whatever  principle  is  adopted  as  a  per- 
f  manent  regulation,  ought  to  be  uniform  and  appli¬ 
cable  to  the  customs  as  well  a3  the  lands.  That  in 
*  the  -collection  and  disbursement  of  the  public  reve¬ 
nue,  it  will  be  proper  to  attempt  to  remedy  some 
of  the  evils  of  the  paper  system,  he  had  no  doubt. 
We  may  by  our  regulations  do  something  to  in¬ 
crease  the  use  and  circulation  of  specie,  and  dis¬ 
countenance  bills  of  small  denominations.  With 
regard  to  this  important  object,  Congress  had,  per¬ 
haps,  clone  all  that  it  could  by  direct  legislation.  It 
has  superseded  the  act  of  1819,  and  legalized  for¬ 
eign  coin?  it  has  raised  the  standard  of  gold  coin; 
it  lias  established  additional  mints  and  greatly  in¬ 
creased  the  annual  coinage,  and  particularly  that  of 
gold,  which  has  already  become  a  new  and  import¬ 
ant  part  of  our  metallic  currency.  The  amount  of 
specie  in  the  country  is  greatly  increased  the  last 
three  years,  for  which  this  administration  is  entitled 
to  great  credit. 

Mr.  N.  said  that  he  could  not  assent  to  the  pro¬ 
position  of  the  Senator  from  Massachusetts,  who, 
if  he  understood  him,  contended  that  it  was  the 
right  and  the  duty  of  Congress  to  regulate  the 
wh  le  currency  of  the  country.  By  this,  he 
understoo  1  the  Senator  to  mean,  that  Con¬ 
gress  h  d  the  power  to  regulate  the  paper 
issues  of  the  State  banks.  If  he  did  not 
refer  to  this  description  of  currency,  it  was  dif¬ 
ficult  for  him  to  conceive  to  what  his  remarks 
were  intended  to  apply.  But  whilst  we  were  so 
emphatic  1  y  informed  that  this  was  the  duty  of 
Congress  we  were  not  told  how  it  was, to  be  done. 
1(11  wliat  way  can  Congress  rtgulate  the  paper  cur¬ 
rency  supplied  by  the  State  banks?  The  gentle¬ 
man  did  ni't  inform  us:  be  seemed  to  have  -a  stu¬ 
died  caution  and  reserve  on  thin  point,  and  thereby 
hangs  a  tale.  Mr.  N.  thought,  however,  there 
-  was  no  secret  in  the  case.  The  views  of  the  Sena¬ 
tor  have  been  heretofore  disclosed.  Sir,  said  Mr. 
N.  the  Senator  would  regulate  the  paper  currency 
of  the  Stales  by  a  paper  currency  of  the  Federal 
Government;  he  woulcl  regulate  the  banking  in¬ 
stitutions  of  die  States  by  the  agency  of  a  bank  «>f 
the  United  State's.  This  was  the  secret  A  national 
bank  is  to  be  the  regulating  power.  But  the 
country  thought  the  remedy  worse  than  the  dis¬ 


ease;  they  had  twice  tried  it,  and  knew  what 
sort  of  a  regulation  it  was.  He  was  speaking  of 
a  national  bank  in  a  mere  financial  point  of  view, 
without  any  reference  to  constitutional  or  political 
objections;  and  in  this  aspect  of  the  question,  he 
did  not  hesitate  to  say  that  the  proposition  of  es¬ 
tablishing  a  national  bank,  as  a  means  of  restraining 
and  regulating  the  State  banks,  was  the  most  pre¬ 
posterous  one  ever  submit'  ed  to  a  deliberative  body 
and  the  boldest  attempt  ever  yet  ma  le  to  practise 
on  the  gullability  of-tlie  people.  That  such  an  insti¬ 
tution  possessed,  and  would  necessarily  ox  rcise, 
great  power  ovtr  the  ktate  banks,  he  was  not  dis¬ 
posed  to  deny;  but  the  question  v.  ai,  whether  that 
power  would  be  exercised  for  good  or  for  evil. 
The  question  is  not  whether  it  is  a  regulator,  but 
whether  it  is  a  safe  regulator;  whether  it  tends  to 
keep  the  paper  currency  of  the  country  more 
stable,  or  to  render  it  more  fluctuating.  He  ap-  - 
pealed  to  the  experience  of  the  count  y  in  the  last 
twenty  years  to  settle  that  question.  When  the 
great  national  bank  throws  out  its  money  plenti¬ 
fully,  the  State  hanks  do  the  sime;  tlmy  are  in¬ 
vited  to  this  course,  and  it  is  their  interest  to  pur¬ 
sue  to  it.  When  it  curtails  its  discounts  and  its 
issues,  the  State  banks  are  compelled  to  do  the 
same;  so  that  the  result  of  this  mode  of  regulating 
the  paper  currency  of  the  country,  through  the 
agency  of  a  national  bank,  is,  to  place  in  the  hands 
of  a  few  individuals  the  power  to  maize  money  plenty 
or  scarce  at  their  pleasure.  The  currency  of  the 
country  is  made  to  depend  on  the  interest,  the  ca¬ 
price,  or  the  passions,  cf  one  or  more  individuals. 
This  is  a  power  greater  than  that  possessed  by 
your  Executive;  and  its  terrible  effects  were  ex¬ 
perienced  during  the  memorable  year  cf  the 
panic. 

Mr.  N.  said  that  the  present  high  prices  of  pro¬ 
visions  and  the  necessaries  of  life,  were  supposed 
to  be  inconsistent  \vi;h  the  existing  scarcity  of  mo¬ 
ney.  There  was  nothing,  however,  extraordinary 
in  this  state  of  things;  it  was  the  case  in  1819. 
The  reaction  was  felt  first  upon  stocks,  and  those 
kinds  of  property  which  had  a  more  intimate  con¬ 
nection  with  the  money  market;  whilst  the  pro¬ 
ducts  of  labor  were  less  easily  or  immediately  af¬ 
fected.  When  the  prices  of  the  necessaries  of 
life  are  once  raised,  by  an  undue  expansion  of 
currency,  and  credit^  and  consequent  speculation, 
j  it  takes  a  long  time,  often  years,  to  biing  them 
down.  Labor  is  the  last  thing  that  is  raised  in 
price;  but  when  it  is,  all  the  products  of  labor  will 
of  course  be  advanced,  and  may  rem  do  high  for 
years;  but  the  reaction  which  is  going  on  must 
bring  them  down  to  their  proper  value. 

The  Senator  from  Ohio  (Mr.  Ewing)  has  given 
a  very  novel  explanation  of  the  present  high  price 
of  breadstuff.  Me  says  that  this  country  will  no 
longer  export  wheat  or  flour,  that  ther<?  is  hut  a 
small  belt  of  three  or  four  degrees  of  latitude,  suit¬ 
able  for  grain.  and  that  from  the  establishment  of 
manufactures,  the  demand  at  homo  is  greatly  in¬ 
creased;  so  that  hereafter  we  can  do  no  more  than 
supply  the  domestic  demand.  We  are  told,  also, 
that  Europe  is  a  great  gra;n  country.  But  the 
Sen  .tor  seems  to  everldok  the  great  and  important 
fact  of  the  difference  in  the  population  of  the 
tvro  continents.  The  whole  population  of  the 


I 


1 2 


United  States  Is  less  than  that  of  the  British  Isles, 
which  for  several  years  have  supplied  the  entire 
breadstuff  lor  their  whole  population.  At  the 
time  of  the  union,  in  1750.  England  and  Scotland 
had  a  population  of  seven  millions  and  a  half,  and 
the  agriculture  ofthecount'y  produced  barely  a 
supply  of  gvsi'n  tqual  to  the  consumption;  and 
since  tnat  lime  the  population  had  more  than  dou¬ 
bled,  yet  the  last  two  or  three  years  no  wheat 
h;  d  been  imported.  The  production,  by  the  im¬ 
provement  of  agriculture,  had  increased  conside¬ 
rably  above  one  hundred  per  cent,  and  to  what 
extent  it  might  be  increased,  remained  to  be 
known.  Comparing  this  country  to  England,  he 
did  not  doubt  that  its  resources  for  gram,  v.  hen 
property  developed,  would  be  found  sufficient  to 
sustain  a  population  of  two  hundred  millions  The 
Senator’s  own  State  and  one  adjoining,  could  pro¬ 
duce  gram  sufficient  for  the  present  population  of 
the  wade  Union. 

Mr.  N.  said  he  would  conclude  what  he  had  to 
say,  by  noticing  one  observation  of  the  Senator 
from  Ohio,  (Mr.  Ewing.)  That  Senator  did 
not  seem  to  be  satisfied  with  condemning 
the  Treasury  order  as  unconstitutional  and 
illegal,  and  as  the  cause  of  the  distress  which  has 
prevailed;  but  he  seemed  to  think  it  necessary  to 
assau  the  motives  of  its  authors.  He  more  than  in¬ 
sinuated  tlit  the  measure  did  not  originate  with 
the  President  or  the  Secretary  of  the  Treasury. 
He  seemed  to  allude  to  a  power  behind  the  throne, 
greater  than  the  throne  itself;  but.  v/i’b  whom  that 
power  existed,  we  were  rot  informed.  He  ex¬ 
pected  every  moment  to  hear  that  it  was  the 
“ Kitchen  Cabinet but  die  Senator  had  not  ex¬ 
pressly  alluded  to  that  famous  council,  which 
once  exercised  such  potent  influence  over  public 
affairs. 

He  thought  that  common  justice  required 
that  the  motives  of  the  President  should  have  been 
spared.  This,  however,  had  not  been  done.  The 
Senator  appeared  to  think  that  there  was  some 
wicked  motive  in  the  Treasury  order;  that  the 
object  of  its  authors  was,  not  what  it  imported,  or 
wh  .t  had  been  assigned.  He  says,  the  real  object 
was  to  create  embarrassment  and  distress  through¬ 
out  tlie  country,  and  to  charge  the  same  to  the 
operation  of  the  deposite  act  or  last  session,  and 
thereby  render  that  measure  unpopular  with  the 
people.  This  was  the  deep  laid  plot  which  the 
Senator  has  discovered.  Mr.  N.  said  he  would 
only  s ay,  iu  reply,  that  if  any  such  purpose  had 
aoy  influence  on  the  issuing  of  the  Treasury  or- 
orr,  L  was  the  sihiest  scheme  that  ever  origi¬ 
nated  from  the  fatuity  of  man.  It  could 
not  be  supposed  that  tbe  act  of  last  sesson 


was  to  be  repealed,  and,  cf  course,  there 
could  be  no  other  object  but  to  render  the 
principle  of  distribution  unpopular.  Sir,  said 
Mr  N.  the  opponents  of  that  principle  do  rot  de¬ 
sire  the  aid  of  any  stratagem  or  artifice;  they  w  ill 
not  even  take  advantage  of  the  .embarrassments 
and  difficulties  w  hich  the  execution  of  that  law 
has  occasioned.  These  were  temporary  evils;  they 
were  'foreseen  at  the  time.  He  was  one,  and  per-' 
haps  the  last,  who  had  come  into  the  suppott  of 
that  measure;  but  he  did  it  with  the  full  belief  that 
its  immediate  effect  \you!d  be  to  increase  die  ex¬ 
isting  difficulties.  In  supporting  the  act,  he  did 
not  consider  that  lie  sanctione  d  the  principle  of 
distribution.  Had  tbe  Senate  then  been  told,  as  it 
had  row,  by  the  Senator  from  South  Carolina, 
(Mr.  Calhoun,)  that  in  passing  that  act,  they*  would 
establish  the  principle  of  distributing  surpluses 
from  year  to  year,  the  bid  could  riot  have 
passed  the  Senate.  Deeply  and  forcibly,  as 
many  of  us  felt  the  condition  of  your  Trea¬ 
sury;  unwilling  as  we  were  that  fortv  millions 
of  the  public  money  should  remain,  tor  seve¬ 
ral  years  at  least,  in  the  dope  site  banks,  to  be  used 
asacipit.il,  multiplying  all  tbe  evi  s  of  our  in¬ 
flated  paper  system;  anxiously  and  deeply  as  we 
were  impressed  with  these  t  vils,  we  should  not 
have  entertained  even  a  thought  of  relieving  the 
country  from  them,  by  sanctioning  the  principle 
of  distribution.  No,  (said  Mr.  N.)  that  principle 
has  not  yet  received  the  sanction  of  this  body7;  but, 
it  seems, 'it  is  to  be  pressed  upon  us  the  pre¬ 
sent  session,  and,  he  trusted  the  opponents 
of  the  measure  would  be  prepared  to  meet  it, 
here  and  elsewhere,  before  the  tribunal  of 
public  sentiment,  where  all  questions  affect¬ 
ing  the  great  interests  of  the  country7  and  the 
safety  of  our  institutions  must  ultimately  come, 
and  w  here  the  decision  is  not  only7  final,  but  al¬ 
ways  sale,  and  usually  correct.  i  he  opponents  of 
this  scheme  want  no  extrinsic  circumstances,  or 
even  temporary  considerations,  to  bear  on  the 
question;  all  they  ask  is,  to  meettfie  principle  in 
free,  op 7  n5  and  fair  discussion,  upon  Us  own  intrin¬ 
sic  merits.  If  it  is  a  sound  and  safe  principle,  in 
accordance  with  the  constitution,  consistent  with 
the  rights  of  the  States,  and  conducive  to  the  ge¬ 
neral  prosperity,  it  wilt  doubtless  be  sustained; 
but  if  it  shall  appear  to  be  in  conflict  with  the 
spirit  of  the  constitution,  fraught  with  mischief, 
tending  to  corruption,  and  dangerous  to  the  rights 
and  independence  of  the  States,  it  could  not  stand, 
either  here  or  before  the  popular  tribunal  of  the 
country.  i 

Mr.  N.  said  he  had  concluded  what  be  had  to 
'say7,  and  had  detained  the  Senate  much  longer 
titan  he  intended. 


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